Business IOLA/Escrow Accounts

At NEFCU, we understand the special needs of today’s legal professionals. That’s why we offer two convenient account options to help you save time and avoid administrative hassles by managing your clients’ money more efficiently.

Escrow Management Checking Account

• Maintain a single umbrella checking account and establish sub-accounts for each client to segregate their respective funds.
  
• Establish as many sub-accounts as you like and all deposit, withdrawal and check writing activity to or from your client sub-accounts will be processed through your Escrow Management Checking account.
  
• Reconciling your account is seamless with our concise, easy to read statement detailing all activity within your Escrow Management Checking account as well as the individual sub-accounts.
  
• To comply with IRS reporting requirements, we prepare detailed 1099 statements for each client, saving you additional time and expense. NEFCU’s Escrow Management Checking account meets NewYork State requirements for maintaining separate ledger accounts.

IOLA (Interest on Lawyer Account)

• An easy solution for the NY State requirement to establish separate interest bearing accounts for short term client deposits.
  
• Funds in the IOLA account earn a variable rate of interest, which is periodically remitted to the State to pay legal fees for the indigent.
  
• No minimum balance requirements and no monthly maintenance fees on this account. NEFCU handles all of the necessary record-keeping and reporting, giving you more time to focus on your practice.
  

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See how NEFCU can help you build your business. Click here to see if you’re eligible for membership, call our business team at 516.714.2960, or visit your nearest branch . Business account offerings and product features are subject to change at any time.